Essay on Tobacco Companies Regulate The Dietary Decisions Of Citizens

Essay on Tobacco Companies Regulate The Dietary Decisions Of Citizens

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1) Political – like tobacco companies in the late 20th century, food and beverage companies can
now be targeted with lawsuits relating to health issues
- PepsiCo fought tooth and nail against regulations, taxes and initiatives that aimed to reduce obesity
- In 2001, Boston, MA mayor Thomas Menino banned junk food and soda from the public schools in the city, and in addition banned the selling of high sugar/high calorie drinks on city property
- New York City’s Mayor Michael Bloomberg tried to ban the sale of drinks with high sugar in containers bigger than 16 ounces, but this ban was opposed and halted, with the New York State Supreme Court judge ruling Bloomberg must go through city council and the board of health to institute the ban
- The state of Mississippi, a law was introduced that banned local governments from limiting portion sizes, stating it is not governments role to regulate the dietary decisions of citizens
- Through early 2012, 24 states and 5 cities considered soda taxes, but were met with such strong resistance their efforts failed
- In 2012, 57% of American citizens believed it was either extremely or very important the federal government work on obesity related health problems
Economic – Though it has been years since the financial collapse of 2008, people are still
effected, and there is always potential for another major economic crisis to occur, which would negatively affect PepsiCo’s sales
- It’s also important to mention that inflation and currency exchange rates have an effect on PepsiCo’s profits, as well, the low price of oil will affect PepsiCo’s costs
- PepsiCo’s share of the carbonated soft drink market fell from 31.2% to 28.5% from 2006 to 2011
o This has been attributed to higher prices and new ...

... middle of paper ...

...ain a competitive edge, it will be worth it
- Trends indicate that healthier living is the way of the future, just as cigarette smoking is seen as taboo, and every car comes with seatbelts. It is better to be ahead of the curve than to try and catch up.
- This alternative seeks to appease both the major brand offerings fans and the healthy alternatives fans, by meeting in the middle

9) Short term (3-6 months) – cut back on spending and advertising for the other two segments, and increase spending and advertising for better-for-you products
Medium term (6 months-1 year) – develop more better-for-you products, and test them with consumers
Long term (1-2 years) – the primary focus will be the better-for-you products, with fun-for-you products given less focus. At this point, PepsiCo should reanalyze their portfolio and evaluate the success of the better-for-you segment

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